U.S. government debt prices were higher Wednesday morning, as investors await the imminent signing of an interim trade deal between the world’s two largest economies.
Market focus is largely attuned to global trade developments, with the U.S. and China expected to agree on the terms of their so-called “phase one” trade deal later in the session.
On Tuesday, Treasury Secretary Steven Mnuchin suggested that the U.S. would keep tariffs on Chinese goods in place until the completion of a second “phase two” agreement, Reuters reported.
The news appeared to dampen market sentiment, with some concerned about the details of the agreement. It had been hoped the deal might de-escalate a protracted trade war between Washington and Beijing.
On the data front, the Bureau of Labor Statistics will release its producer price index (PPI) for December at 8:30 a.m. ET. It measures the change in prices of goods and services from the perspective of the producer.
Economists surveyed by Dow Jones expect an increase of 0.2% for December. In November, both the main PPI and the core PPI, which strips out more volatile items such as energy costs, were flat for the month.
The Empire State Manufacturing Survey, which measures activity in the New York area, will be released at the same time.
Philadelphia Fed President Patrick Harker will comment on monetary policy at an event in New York slightly later in the session.
There are no major U.S. Treasury auctions scheduled on Wednesday.
— CNBC’s Jesse Pound contributed to this report.